## Bank Consolidation and Performance: The Argentine Experience

_IMF Working Papers, August 1, 2004_

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## Bibliographic details
- Published: August 1, 2004
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451856927.001

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### Study scope and dataset
- Examines a large panel of more than 100 banks from Argentina.
- Sample period: between December 1995 and December 2000, described as a period of heavy bank consolidation and relative calm.
- Pages: 32.

### Main empirical findings
- Overall effect of bank consolidation on bank performance is positive and significant.
- Bank returns increase with consolidation.
- Insolvency risk is reduced with consolidation.

### Effects by type of corporate action
- Mergers and privatizations:
  - Suggested to have a beneficial effect on bank returns.
  - Reduce a bank's insolvency risk significantly.
- Acquisitions:
  - Effect on return on equity is negative.
  - Do not seem to have any effect on risk-adjusted returns.
  - Insolvency risk is unrelated to bank acquisitions.

### Performance and risk indicators referenced
- Bank return (general returns) — increases with consolidation.
- Return on equity — negatively affected by acquisitions.
- Risk-adjusted returns — acquisitions show no apparent effect.
- Insolvency risk — reduced by consolidation generally; significantly reduced through mergers and privatization; unrelated to acquisitions.

*International Monetary Fund. "Bank Consolidation and Performance: The Argentine Experience", IMF Working Papers 2004, 149 (2004), DOI: https://doi.org/10.5089/9781451856927.001*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/bank-consolidation-and-performance-the-argentine-experience-17363_